Sweet and Sour Changes in Trade Regimes
21 Pages Posted: 20 Jun 2013
Date Written: June 2013
Sugar is an important export for a number of developing countries, especially in the African, Caribbean and Pacific regions. In many of these countries, preferential access to the EU market has been a key factor to develop their sugar sectors. The recent and proposed changes to the international sugar trade regimes, particularly in the EU, are threatening this preferential access. We study the possible implications of such changes on ACP countries’ sugar production and exports by using a spatial price equilibrium model specifically developed for the sugar market. The results suggest that the effects of these changes are likely to vary according to the prevailing level of world sugar market price and according to whether ACP countries are current exporters to the EU.
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